Operations

We began our analysis by searching for bottlenecks that existed in the current system. It was easily identified that major issues existed in the ordering process. Without calculations, you could tell the reorder point was too low since the historical plots showed inventory levels at zero for two or more days at a time. The number of jobs in customer orders showed correlating spikes at the same time of the inventory outages. We reviewed the utilization and queues of the other stations in the system but were hesitant to make in immediate changes since we were not entirely certain the effects of correcting the inventory policy.
To correct the inventory policy, we want to find the optimal ordering quantity based on the calculation EOQ=√2DS/H. Demand was calculated by taking the average number of customer orders per day over the first 50 days. We came up with a figure near 12.24 orders per day which we multiplied by 268 days for the entire simulation. Setup cost was provided for us at $1,000 per order and holding cost was generated by multiplying the cost per unit by the interest rate which gave us a yield of 60. Based on this information, EOQ was 331 units after rounding. From the history, this was the second change we made to the inventory policy, up from 299. This was a result of a discussion in demand, where we had calculated demand based on 218 days for the simulation instead of the 268 days of the actual simulation. Next we wanted to fix the reorder point so we could eliminate inventory shortages and determined we would like to do so while maintaining a 95% service level. Since R=mean DDLT+z*std. dev. of DDLT, we needed to calculate Mean DDLT, z & std. deviation of demand. For mean DDLT, we used the 12.24 * 4 day lead time which gave us a rounded value of 49. Excel was utilized to figure z=1.64 for the service level of 95%. We found the std. dev. of DDLT by…...

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...today. It also discusses some of the processes used in different aspects of operations management as well as describing what a supply chain is and how we see them represented. The information gathered to write this paper was mostly gained from the Operations Management textbook and articles found on websites. The results that the research provided was that operations management is a vital component to running a company that is offering goods or services to consumers.
TABLE OF CONTENTS
Introduction 4
History 4
Operations Management 5
Processes 6
Supply Chain Management 7
Operations Management Today 7
Conclusion 8
References 9
Introduction
Operations management has been around for hundreds of years in one capacity or another. The value of having a good operations management plan in place is in fact invaluable. There is rarely any type of business that produces a good or service that does not have some sort of operations management plan in place. This is the only productive way to produce a quality good or service that a customer would want to purchase. It is also the only way to keep a customer coming back for more. There is a lot of history behind operations management as well as the roles of operations managers and the processes used. Supply chains are very prevalent in......

...Unit 34 – Operations Management in Business
(Word Count: 3598)
Jason Hixson
Tel: 01454 281141
Tutor: Mike Brayford
Email: jason@rapidandsecure.co.uk
Contents Page(s)
Task 1 Nature & Importance of Operational Management 3 - 6
Task 2 Operations Management & Strategic Planning 7 - 8
Task 3 Production Process 9
Task 4 Techniques/Operational Plan 10 - 12
Bibliography 13
Task 1
Introduction:
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.
A McDonald's restaurant is operated by either by a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27 percent over the three years ending in 2007 to $22.8 billion, and 9 percent growth in operating income to......

...Zhenni Lou
Option 7:Research Assignment for Operation Management
Understanding Apple Company’s value chain
This main purpose for this article is to analyze Apple Company’s value chain. From this article, some professional knowledge about value chain in operation management can be learned. And the analyze will be deeply discussed in operation structure. In the textbook, operation structure is defined as the configurations of resources in the value chain including elements of suppliers, factories, distributors, sales offices, design and so on. (Collier and Evans, OM) The following articles will analyze specifically how these elements are operated in Apple Company from the view of Value chain style and value chain model.
We can not deny that Apple Company is familiar with everybody in the modern society. In 1976, Apple Company was set up by selling computers. They expanded their business to other industries especially in music player and phone during the development of the company in last 11 years. (Apple company) Nowadays, Apple is the dominant marketing leaders in each field they joined in. The most significant factor of these excellent performances is the attitude to the value chain management. The obvious proof for this conclusion is the last sentence of the article as follow: Apple plans to double spending on its supply chain, to $7.1 billion,......

... objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
The description above recognizes a significant role for internal auditing that is based on the activities in which it has a defined expertise. At the same time, it recognizes that there are many different constituencies (customers) for internal audit services. For example the definition clearly envisions important customers as: Senior management, Operational management, Audit committees and the board of directors.
Conflicts that may arrive in serving these different constituents include operational management may be interested only in advice that will improve the efficiency or effectiveness of operations. Senior management may be interested in activities that may directly affect the bottom line, or potentially their bonuses. On the other hand the audit committee may be more concerned with managing their own risk and request a greater focus on risk management and control activities.
Audit committees are primarily interested in assurance services regarding risk and control. Operational management is primarily concerned with consultative help regarding the efficiency of operations and adequacy of control mechanisms. Senior management is concerned with both consultative advice...

...Topic 1- operations
Chapter 1: ROLE OF OPERATIONS MANAGEMENT
The role of operations managementThe creation of goods and the provision of services by businesses. The transformation of inputs into outputs or products to be sold. This involves: * planning activities * purchasing inputs * managing inventory * selecting and implementing manufacturing processes * Developing strategies to gain a sustainable competitive advantage. |
The strategic role of managementA strategic decision is one that affects the business in the long term. The strategic goals areto improve: * productivity * efficiency * quality of outputsTherefore, all strategic decisions will focus on lower costs to an industry benchmark through efficiency and producing a good or service that is different to and competitive against rivals in the market. There are 3 types of strategies that are commonly used by businesses to gain and maintain a competitive advantage. These are: * cost leadership * product differentiation * market segmentationcost leadershipA cost leadership strategy is where a business aims to be the lowest cost manufacturer within its industry. The products are the basic, no-frills type with fewer features, perhaps lower quality and using low-cost packaging. Low costs can be achieved through: * economies of scale in production and distribution, * access to cheaper raw materials * exclusive access to a large source of low cost inputs * Distributing the product using...

...in order to implement a design element (a little green light on a laptop so that users would know that the camera is on) and builds to this:
Most of Apple’s customers have probably never given that green light a second thought, but its creation speaks to a massive competitive advantage for Apple: Operations. This is the world of manufacturing, procurement, and logistics in which the new chief executive officer, Tim Cook, excelled, earning him the trust of Steve Jobs. According to more than a dozen interviews with former employees, executives at suppliers, and management experts familiar with the company’s operations, Apple has built a closed ecosystem where it exerts control over nearly every piece of the supply chain, from design to retail store. Because of its volume—and its occasional ruthlessness—Apple gets big discounts on parts, manufacturing capacity, and air freight. “Operations expertise is as big an asset for Apple as product innovation or marketing,” says Mike Fawkes, the former supply-chain chief at Hewlett-Packard (HPQ) and now a venture capitalist with VantagePoint Capital Partners. “They’ve taken operational excellence to a level never seen before.”
So operations management is key for Apple! Does it get sexier than that?The article goes on with a number of examples:
Apple began innovating on the nitty-gritty details of supply-chain management almost immediately upon Steve Jobs’s return in 1997. At the time, most computer manufacturers transported......

...Operating Instructions of the Flood Light
Warning: In order to install the light correctly, please read and keep the operation instructions carefully after unpacking.
1. Main Structure and Application Scope of the Flood Light
The housing of the flood light is made from high-intensity die-casting aluminum with spray painting surface, which has a good effect of heat dissipation.
It is mainly used for outdoor lightings, such as cottages, courtyards and hotels,etc.
2. Main Structural Parameters
Product Size:
Rated Working Voltage:
Rated Power:
Frequency:
Viewing Angle:
Color Rendering Index:
Life Span:
Luminous Flux:
Anti-electric Shock Rate:
Lamps Temperature:
Enclosure Protection Class:
LED Lamp Beads QTY:
3. Installation Requirements and Maintenance
(1) Arranging various parts and accessories that the light needs.
(2) Cutting off the power before installation.
(3) The wires of the light should be installed with the corresponding power lines.
(4) Making sure the light is installed on the fastening surface and then lighting up the light.
4. Notices
(1) The light must be installed by the professionals.
(2) If the light meets some damages due to the unpredictability, it will be considered as a substandard product and will not be used.
Instrucciones de operación del reflector.
Advertencia: para la instalación correcta del reflector, por favor, leer y guardar cuidadosamente las instrucciones de operación después de desempacar. 1. Estructura......

...Question 1 :
What is the difference between operations management and process management?
Operation Management
How the company manages its operation, shall be the key answer to it. In fact, Operation Management is one of the topmost important factor for a company’s success. Having said that, OM helps the organization to recognize “what are” the process, people, decisions, responsibilities and “how” the available resources can be utilized and maximized to deliver the goods or satisfactory services to the clients.
Process Management
A type of management that deals directly with the organization’s ways of aligning the series of activities involved in any of its operational process, with the aim to clearly define how the entire process is performing. One of the example of process management is “Business Process Management (BPM) . The main purpose of process management is to minimize errors due to human and reduces miscommunication and increase productivity.
In your opinion why might it be necessary to have the two terms?
Having this as a simple illustration, a client company (DEF) requires its supplier company (ABC) to send its ordered goods from KL to Penang in half a day time. As an Operation Manager of ABC company, Mr. Kuak plans what are needed for the delivery of the goods. He needs to get a driver in a pink of health and choose one of its best truck that’s capable to drive long distance. Where as, Mr. Lan the process manager, decides how the driving journey be......

...Case Study #1 Written Assignment
Kimberly McFarland
MT435 Operations Management
Kaplan University
Date: 7/9/2014
Introduction
As a consultant for KU Consulting I am going to take a look at Albatross Anchor’s operations. I am going to take a look at their cost structure to see where they can take a closer look at their capacity to see how they can maintain maximum output. I am going to look at their manufacturing process to see how quickly they can produce their anchors. I want to see how flexible Albatross Anchor is at filling their orders for their anchors. I want to take a look at their outdated technology to see how they can maybe update their technology to help the factory run more smoothly. Next I will take a look at how Albatross Anchor can work on their layout. In doing this I want to see how they can utilize their capacity and have a better layout for the factory. I also will look to see how Albatross Anchors can better serve their customers or answer any questions their customers may have. Lastly I want to look at two separate processes for manufacturing the bell/mushroom anchor to see what one is a better process for Albatross.
Question 1
Based on the information presented in the scenario/case study discuss Albatross Anchor’s competitiveness in relation to (please address all items in the below list and provide support for your conclusions):
1. Cost
a) Cost or Production: In looking at the cost of production for Albatross Anchor you need to keep......

...* What is operations?
* The part of a business organization that is responsible for producing goods or services
* How can we define operations management?
* The management of systems or processes that create goods and/or provide services
Manufacturing and Service Organizations differ chiefly because manufacturing is goods-oriented and service is act-oriented
The Operations Function consists of all activities directly related to producing goods or providing services.
* System Design
Capacity. Facility location. Facility layout. Product and service planning. Acquisition and placement of equipment
* These are typically strategic decisions that
* usually require long-term commitment of resources. Determine parameters of system operation
* System Operation
* These are generally tactical and operational decisions
Management of personnel. Inventory management and control. Scheduling
Project management
* Quality assurance
* Operations managers spend more time on system operation decision than any other decision area
* They still have a vital stake in system design
* The systems approach
* Emphasizes interrelationships among subsystems
* Main theme is that the whole is greater than the sum of its parts
* The output and objectives of the organization take precedence over those of any one subsystem
Supply chain issues
* The need to improve operations
* Increasing levels of......

...various operations planning and control issues that company faces.
Task 1- (A.C.:3.1.) Explain linear programming and it uses.
According to slack et all (2013 ) linear programming is a technique that is useful for allocating scarce resources among competing demands. As has been argued Slack et all (2013) those resources may be money, time, or materials but also the limitations are known as constraints.Shim & Siegel ( 1999) argued that the linear programming was originated during the early 1950s by Prof.G.B Dantzig which it was called as an operation research technique.
According to Chary (2004) the main basic problem solved by Linear Programming is that of optimising either total cost or profit. However as has been argued Chary(2004) it takes into considerations the limitations or constraints on the availability or usage of different resources. Also Shim & Siegel (1999) agreed that this technique could be applied in different situations: long term planning, production planning, decision-making, marketing , quality control decisions, material utilisation decisions etc.
Slack et all (2010) suggested that linear programming consists in two important ingredients:
Objective function: the organization must provide the specific objectives to be achieved
Constraints: Constraints are in the form of restrictions on the availability of resources or meeting the minimum requirements.
Applications LP can be use to to solve some problems in operations......

...MISSIONS & STRATEGY
An effective operations management effort must have a mission so it knows where it is going and
a strategy so it knows how to get there. This applies for both small organisations and large
international organisations.
Mission
According to Heizer and Render (2006), a mission can be defined as the purpose or rationale for
an organisation’s existence. Economic success and survival is the result of identifying missions
to satisfy a customer’s needs and wants. Developing a good strategy would be easier if the
organisation’s mission is clearly defined.
A mission statement usually includes the following six elements:
1. The intention of the business.
2. The role of the business.
3. The interests of different stakeholders.
4. The strategy of the business.
5. The industry in which the organisation operates.
6. The target market.
Examples of mission statements are as follows:
To provide society with superior products and services-innovations and solutions that
improve the quality of life and satisfy customer needs-to provide employees with
meaningful work and advancement opportunities and investors with a superior rate of
return.To manufacture and service an innovative, growing, and profitable worldwide microwave
communications business that exceeds our customers’ expectations.
Once an organisation’s mission has been formulated, each functional area within the firm
determines its supporting mission. Missions for each function are...